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DECISION No

DECISION No. 1405/1998/QD-BTM OF NOVEMBER 17, 1998 PROMULGATING THE REGULATION ON BIDDING FOR QUOTAS OF TEXTILES AND GARMENTS TO BE EXPORTED TO QUOTAS-REGULATED MARKETS

THE MINISTER OF TRADE

Pursuant to Decree No. 95/CP of December 4, 1993 of the Government defining functions, tasks, powers and organizational structure of the Ministry of Trade;

Pursuant to Official Dispatch No. 1126/CP-KTTH of September 21, 1998 of the Government on allocating quotas of textiles and garments to be exported to quotas-regulated markets;

Pursuant to Decision No. 1349/BTM/QD of November 7, 1998 of the Minister of Trade on setting up the Council for Textile-Garment Quotas Bidding;

At the proposal of the Chairman of the Council for Textile-Garment Quotas Bidding,

DECIDES

Article 1.- To promulgate together with this Decision the Regulation on bidding for quotas of textiles and garments to be exported to quotas-regulated markets.

Article 2.- This decision takes effect after its signing.

Article 3.- The Chairman of the Bidding Council, the director of the Office, the director of the Organization and Personnel Department and director of the Import-Export Department of the Ministry of Trade and all enterprises participating in the bidding shall have to implement this decision.

For the Minister of Trade

Vice Minister

NGUYEN XUAN QUANG

REGULATION ON BIDDING FOR QUOTAS OF TEXTILES AND GARMENTS TO BE EXPORTED TO QUOTAS-REGULATED MARKETS

(issued together with Decision No. 1405/1998/QD-BTM of November 17, 1998 of the Minister of Trade)

Part I. GENERAL PROVISIONS

Article 1.- Subjects and conditions for bidding participation

1.1. Enterprises participating in bidding are those who have business registration certificates or investment licenses under the Law on Foreign Investment in Vietnam, have the textile and garment commodity line and fulfilled the quotas of the previous year.

1.2. Conditions for enterprises to participate in the bidding:

- Enterprises are directly engaged in the production, export and import of textiles and garments, are fully able in term of production equipment suitable to the goods catergories and quantities offered for bidding, and have financial ability to perform the contract when winning the bid.

- Dossiers of bidding participation shall comply with the provisions in Point 4.3.

Article 2.- Bidding principles:

2.1. Being public in organizing the bidding and opening bids.

2.2. Based on specific conditions of each bidding, the Bidding Council shall stipulate the goods category, the quantity of each category and the bid prices of each bidding drive.

2.3. Enterprises participating in bidding are entitled to register bid offers for each category with the maximum quantity defined in the bid-invitation dossiers.

Article 3.- Establishing Bidding Council:

The bidding council is composed of departmental-level representatives of the Ministry of Trade, the Ministry of Industry, the Ministry of Planning and Investment and the Ministry of Finance, with a leading official of the Ministry of Trade as its chairman.

The list of the official members of the Bidding Council shall be announced by the leadership of the Ministry of Trade after their nominations by the participating ministries. The Minister of Trade shall decide the establishment, organizational structure, functions and tasks of the Bidding Council. The Bidding Council shall have the responsibility to prepare, organize and effect the bidding and announce the results thereof.

Party II. BIDDING PROCEDURES

Article 4.- Preparation for bidding:

4.1. The Bidding Council shall stipulate the location, time, goods categories and quota volume for the bidding.

4.2. To announce bid invitation (on newspapers of the Trade, Investment, Industry and/or Finance sectors).

4.3. To distribute bid invitation dossiers

A bid dossier shall include:

1. The bid invitation notice

- Goods category(ies): export market

- The volume open for bidding, the maximum volume for a bid offer

- The bid price

- The time to effect bidding (the time of receiving the dossier, the time of opening bids).

2. The written registration of participation in bidding

3. The copy of the business registration certificate or the investment license under the Law on Foreign Investment in Vietnam.

4. A written introduction of the company�s production and/or commercial ability.

5. The publicized financial report of the preceding year (according to form set by the Finance Ministry).

6. A deposit for participation in the bidding as prescribed.

7. A written deposit commitment to ensure the fulfillment of the volume won in the bidding.

Article 5.- Procedures for bidding

5.1. Bidding participation:

The participating enterprises who are fully qualified under the provisions of Article 1 shall submit their bid dossiers (closed and sealed) to the Ministry of Trade as scheduled and according to the prescribed form, enclosed with vouchers of deposit money for participation in bidding.

The deadline for submitting bid dossiers shall be the end of the working day before the bid-opening day announced by the Bidding Council.

Enterprises may get bid participation dossiers at the Ministry of Trade or request the latter to mail to them.

5.2. Receiving bid participation dossiers.

5.3. Opening and considering bids according to the time, location and bidding mode stated in the bid invitation dossiers.

5.4. Announcing the bidding results: After the ratification by the chairman of the Bidding Council, the Bidding Council shall, within 07 days from the date of opening bids, announce the bidding results on specialized newspapers and in writing to the bid winner(s).

Article 6.- Bid consideration criteria:

The bid-winning enterprises are those who have registered high prices among the bids according to the order of bid calling for each category, which are not lower than the bidding prices.

- In cases where many bidders have offered the same lowest bid price, the volume with the lowest bid price shall be divided among such bidders according to the proportion of their registered volumes.

- In cases where a bid-winning enterprise refuses the bidding results, it shall have to notify in writing the Bidding Council thereof within 3 days after the announcement of the bidding results. The Bidding Council shall assign the quota to the bidder with the next lower bid price if the latter agrees to take it. In cases where there are many enterprises having the same next bid price, the above quota shall be divided among such bidders according to the proportion of their registered volumes.

Article 7.- Responsibilities and interests of bid-winning enterprises

7.1. Within a week from the date of receiving the bid-winning notice, the bid-winning enterprises shall have to pay the deposit money for the fulfillment of the won quotas, which is equal to 30% of the total amount they have to pay for the purchase of won quotas. The deposit money shall be paid in "bank security" issued by the banks where the enterprises have opened their accounts. Such bank security shall automatically cease to be valid when the enterprises fulfill their won quotas. If the enterprises fail to pay the "bank security" within the above-said time-limit, the notice on the winning of the bids for the corresponding goods lots shall automatically cease to be valid. Such goods lots shall be handled according to Article 6 by the Bidding Council. Those enterprises which fail to abide by this Article shall not be allowed to participate in subsequent biddings.

7.2. The bid-winning enterprise may use the quotas to sign contracts with foreign customers. The won quotas shall not be traded or exchanged.

7.3. Enterprises that do not win the bid shall be refunded their bid-participation deposits.

Bid-winning enterprises may transfer their bid-participation deposits into the amount to be paid for the won quotas.

Bid-winning enterprises who refuse to take the bid shall not be refunded their bid-participation deposits.

7.4. Bid participants shall not be entitled to get back their deposits for ensuring the implementation if the enterprises have won the bid but not yet fulfilled the bid or withdrew the bid participation application after the time-limit prescribed in Point 7.1.

Article 8.- Implementation provisions

This Regulation takes effect after the signing of the decision to promulgate it and shall be addressed to the ministries and the State management bodies. If meeting with any problems in the course of implementation, the ministries, branches, localities and concerned units should promptly report them to the Bidding Council for consideration and proper adjustment.-